Cyprus will Build Affordable Housing
The new housing program will be partly funded by the Housing Fund for the Poor. Every foreigner who buys a property in Cyprus and wants local citizenship will have to pay 75,000 euros, said the Bulgarian news reported in our southern neighbour.
Authorities are planning not only to provide more affordable homes and houses for the local population, but also to increase rents for those who are renting. This is not the first attempt to solve the problem of people who can not buy a home or their monthly rent is high. Typically, financially troubled Cypriots can buy a low or zero interest rate home. The loan is provided by a special state organisation.
However, it turns out that 60% of the participants in this program do not pay the principal for more than one year, which is a sign that the program is not efficient enough. The total indebtedness to the state is 170 million euros.
The new housing program complies with the requirements of the European Union. The authorities are aiming to build "affordable homes". According to Union criteria, these are considered to be objects whose cost (rental, repair or mortgage) does not exceed 30% of the family income. An affordable 80 square meters apartment will cost 70,000 euros, and an area of 100 square meters - 86,000 euro.
Authorities recognise that current rental rates are drastically different from those 5 years ago. The strongest increase was recorded in Paphos - 68% and Limassol - 57%. In Nicosia, the rent increased by 45% and in Larnaca by 43%.
It is envisaged that the poorer Cypriots will receive a higher rate of rent for a dwelling. This will also depend on the area where they live. For example, a 5-member family living in Limassol will receive support of €441 and €406 in Nicosia. For Larnaca and Paphos the aid is €350 .